SCOTTISH Power warned of job cuts today as part of plans to achieve cost savings worth £60m a year.

The company said it had not finalised how many posts would go, but revealed there would be reduced layers of management and further efficiencies as it looked for "substantial change" in the running of its UK arm.

Chief executive Ian Russell indicated the job losses were likely to be focused on the corporate side of the business, which is based in Glasgow. The company employs around 8,000 people in the UK.

The restructuring was announced a day after German utility E.On - owner of the Powergen brand - confirmed it was weighing up a takeover bid for Scottish Power.

In a separate announcement today, Scottish Power confirmed it had yet to receive an approach from E.On.

The company said the restructuring had been prompted by the proposed sale of PacifiCorp, the US-based energy producer which has proved to be a drag on the company's profits.

As a result of the disposal, Scottish Power will be released from certain operational and reporting requirements - meaning it will be able to simplify the management structures of ongoing operations.